Parijat Industries leverages its multi market verticals for synergistic growth
Sep. 25, 2017
Agriculture by its very nature is seasonal and largely dependent on local climatic conditions. Consequently, agrochemical companies are directly impacted by success or failure of climatic season in a market. This has been further exacerbated by climate change.
Conventionally, Indian Agchem companies are focused on only one section or two of the market at maximum. Parijat has strategically built its market with equal emphasis on domestic and international business.
This strategy has provided two key advantages to Parijat. First, international exposure to markets with similar pestilence and climatic issues, typically along similar latitudes, equips Parijat with market intelligence to forecast future potential products for the Indian market. Experience with White Fly control in Spain, spurred Parijat to begin registering Pyriproxyfen in India long before the molecule gained its current centrality for cotton farmers. Decreasing demand for Tricyclazole- a rice fungicide- due to lowering of residue acceptance levels in USA allowed Parijat to predict the requirement for a Tricyclazole substitute.
The second advantage of this diversified strategy has been in terms of risk-management, so that a failure of the domestic season is hedged against performance in international markets.
Investments in regulatory strength for Indian and export markets have served to bolster each other and complementarily enhance each in turn.
Parijat's ecosystem of diversified subsidiaries, global partners and vast distribution network enable delivery across a vast suite of agrochemical products. Parijat has established 6 international offices globally. This subsidiary and office networkhas enabled it to penetrate challenging markets and access diverse sources of products. The company's experiencein different and diverse geographies globally coupled with over 300 registrations, is positioning Parijat as an ideal partner for global business. The company's branded formulation exports have reached over 70 countries since its operations which are now well over a decade old.
Parallelly Parijat's domestic strategy is built on two pillars- Branded sales through a network of 4000 dealers and distributors across the country; and sale of proprietary products (which Parijat has exclusive rights to import) to corporate buyers including most major Indian players in the industry. This out-licensing strategy has enabled Parijat to access wider shelf-space for the products it is pioneering. Parijat's strategy through its corporate sale division has been to build up the market size rather than battle for market share.
The company has proactively invested in being an early mover and in some cases the first Indian company after the MNC to register newer generation off-patent molecules.
Parijat's domestic retail business began in 2008. With presence pan India, a formulation plant, strategically placed at the mouth of its agricultural hubs, in Ambala, Haryana; and an upcoming technical plant, Parijat offers over 60 branded products to Indian farmers. Working through 24 depots, Parijat's retail staff of over 300 sales persons and 75 development executives, a vast network of over 4000 distributors are catered to. Parijat's key strength and the driving force for its exponential growth, is their strategic 9(3) registrations in key products. Parijat's strong dealer network and ecosystem of co-marketers is an ideal conduit for reaching the fragmented but lucrative and precipitously growing Indian Agri-inputs market. Having demonstrated experience in market development and extension and are associated with best-in-industry marketing and brand promotion programs.
Keshav Anand, CMD, says, "while Parijat will continue to focus on the crop protection market, agility in both global markets horizontally and in different segments vertically will remain the USP of the company."
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